Answer: A. True
Explanation:
The basic principle associated with the economics is that the goods, products, and services are limited and demand increases considerably to produce them. The resources used for the production also increases considerably. The scarcity principle of economics deals with the limited supply of the goods that is coupled with the increase in demand this results in the mismatch between the demand equilibrium and desired supply.
Global connectedness has resulted to cultural assimilation whereby people are adopting what they consider as superior social practices from mostly the Western culture. Global connectedness has made information available through access to the internet and people are now likely to have similar social practices world over
1. The difference between a bond and a stock is that stocks are shares that represent ownership in a company, and bonds are a form of long-term debt where you invest your money (essentially, a business loans money FROM you and promises to pay it back by a certain date). You should see a sizable return at the end of a bond's maturity date.
2. What makes a mutual fund an attractive investing option is that it is a diversified portfolio of different investments, such as bonds and stock. Since it is more spread out there is less overall risk.
3. A commercial bank differs from a Savings and Loan (S&L) association because S&L associations are more focused on residential mortgage, whereas commercial banks work more with large businesses.
4. A commercial bank differs from a credit union because most credit unions are not-for-profit establishments with their earnings paid back in the form of lower loan rates and higher savings rates. Commercial banks are for-profit and whatever they earn are paid back to stockholders only.